Parking Eye Sold

trisontana

Thanks to the OP on PePiPoo who posted this:-

https://otp.tools.investis.com/clients/uk/capita_plc/rns/regulatory-story.aspx?cid=3&newsid=1113198

Capita plc (Capita) announces today that it has reached an agreement to sell its parking management business, ParkingEye, to a vehicle owned by Macquarie and funds advised by MML Capital Partners for a cash consideration of £235m. The transaction is expected to close later this year.

The transaction is in line with Capita’s strategy of simplifying the business, focusing on growth markets and disposing of non-core businesses.

ParkingEye’s underlying revenue and operating profit were £40m and £14m respectively in the year to 31 December 2017 and the business had gross assets of £22m. In Capita’s half year results, ParkingEye will be reported as a business exit in non-underlying items. The cash proceeds will be used to reduce net indebtedness.

Umkomaas

the business had gross assets of £22m

I wonder how much of that is unpaid parking charges?

I anticipate an even more aggressive approach by PE as their new masters will want as large as possible a return for their outlay. They're hardly going to say 'You need to change your foul image, so soften your approach'! :cool:

Not a bad business deal for Crapita - paid £57m, sold for £235m.

System

Jeez. Nearly 17 times profit on assets of 22

There must be a second set of books somewhere or Capita saw them coming.

Umkomaas

IamEmanresu wrote: »

There must be a second set of books somewhere or Capita saw them coming.

Or the greedy new owners' eyes are revolving like the wheels on a one arm bandit with £ signs everywhere.

Weasel_Watcher

Do the new ownwers not realise that there's a real chance of new regulation on the horizon that could render their operating model (i.e. scamming motorists) profitless?


Either they are real idiots, or they know something we don't. Hopefully it's the former.

Coupon-mad

It will never be profitless. Too many fat cat noses in the trough.

Too many handshakes by suits who knew other suits from whichever private school.

System

MML's phone will be ringing off the hook with those ratios. Excel worth £100mn?.

They'll all be looking at how much they can sell out at.

pogofish

Weasel_Watcher wrote: »

Do the new ownwers not realise that there's a real chance of new regulation on the horizon that could render their operating model (i.e. scamming motorists) profitless?

I don't think Macquarie will particularly care - Their main sphere of operation seems to be in the world of "Shadow Banking" - ie the unregulated end of the banking sector, offering high-risk/high-interest loans, junk bond releases,"pump and dump" schemes, high pressure selling, lies and bluster.

Pretty much cowboys, who sound like the perfect bedfellows for PE IMO.

trisontana

Just an update. The sale was completed on Nov 2nd.

Coupon-mad

I wonder if PE will get even more greedy and aggressive than they already are?

waamo

Coupon-mad wrote: »

I wonder if PE will get even more greedy and aggressive than they already are?

I think Will Hurleys recent comments about the IPC moving into different areas particularly interesting. It struck me shortly after the Beavis judgement that it could turn many established notions on their head.

Shoplifting for example has been targeted by ppc like firms who have shyed away from court due to pre Beavis arguments. I think that it is now possible a "private fines" industry could spring up.

P.E as the biggest boy in town are well placed to be at the forefront of this. They have the resources to argue Beavis in other areas. It would be a very small step from parking to littering or dog fouling for example.